Fraud in the UK is at a 12-year high, a study by accountancy firm KPMG claims.

According to the body's anti-fraud team, the total value of cases going to court last year topped £1bn, with the majority of that (£833m) targeted against the government.

The most prevalent type of fraud was ‘carousel' VAT fraud, where participants claim back VAT that was never paid in the first place on products imported from and exported to other EU countries. Instances of identity fraud were also a large contributor.

"The sophistication of organised fraud in the UK is certainly extremely concerning," said Hitesh Patel, a partner at KPMG Forensic.

"More fraud cases have been coming to court in recent years than previously, but one fears that this is just the tip of the iceberg."